Panel to be set up to spot permanent IDBI Bank chief

August 23, 2003 11:55 IST

A day after Ajay Bimbhet was given additional charge as the acting chief executive officer of IDBI Bank, IDBI chairman and managing director P P Vora said that a search committee was being appointed for finalising a permanent chief to head the bank.

Bimbhet who was the retail chief of the bank was given the additional responsibility of acting CEO after Gunit Chadha who was the managing director and CEO, stepped down on Thursday. Incidentally Bimbhet's name has already been send to the Reserve Bank of India.

"We will form a search committee for a permanent CEO in IDBI Bank," said Vora. He however refused to expand on this. He also refused to clarify on whether the committee would be appointing an MD or CEO.

IDBI executive director A K Doda said that the search committee would have a mix of people from the promoters and also independent directors on the board of IDBI Bank. Also no search firm was also being appointed for the purpose.

Both Doda and Vora are also on the board of IDBI Bank. The bank has also been left without a chairman after MS Verma, the former Trai chairman resigned from the board.

Vora was speaking on the sidelines of the ninth annual general meeting of IDBI.

Vora added that IDBI would concentrate on the corporate, wholesale and project finance, while IDBI Bank would concentrate on retail finance.

"We would approach the RBI for regulatory forbearance for our equity exposure as it would be because of our legacy problems. IDBI would also ask regulatory forbearance for sometime for fulfilling the priority sector norms. We are quite hopeful of meeting the target except for agriculture," said Vora.

IDBI has signed a share purchase agreement for purchase of the shareholding of Tata Homefinance Limited. Tata Home Finance has a portfolio of around Rs 400 crore (Rs 4 billion).

Vora added that even IDBI could also go in for home finance. "Banks also have both themselves and their subsidiaries in home finance," he said.

IDBI will also be finalising a consultant for its foray into banking.

On the question of merger with IDBI Bank Vora said, "At present there is no proposal for a reverse or a merger with IDBI Bank."